IRS Abusive Tax Scheme Investigations II
October 11, 2004

The following examples of abusive tax schemes fraud investigations are excerpts from public record documents on file in the courts in the judicial district in which the cases were prosecuted.

Former Owner of California Dietary Supplement Company Sentenced in Federal Fraud Conspiracy
On September 13, 2004, in Los Angeles, CA, Almon Glenn Braswell was sentenced to 18 months in prison and ordered to pay $10,455,367 in back taxes, interest, and penalties. Braswell pleaded guilty on March 2, 2004, to conspiring to evade millions of dollars in corporate income taxes during a scheme that overstated the business expenses incurred by one of his companies, Gero Vita International, Inc. on its federal tax returns. Braswell acknowledged that his scheme caused Gero Vita to underpay its taxes by $4,468,460.

Accountant Sentenced to 37-Month Prison Term for Mail Fraud and Tax Evasion
On August 23, 2004, in Miami, FL, Thomas Sewell, a certified public accountant, was sentenced to 37 months in prison, followed by three years supervised release, and ordered to pay restitution in excess of $7 million to the victims. Sewell previously pleaded guilty to conspiracy to commit mail fraud and for filing false tax returns. Sewell was charged in connection with his participation in an investment fraud scheme, as a result of which investors lost over $7 million. Sewell associated himself with the scheme by recruiting investors from among his accounting practice clientele. Sewell falsely advised his clients that their investments would be safe and that he was personally monitoring the funds. Significantly, Sewell failed to advise his clients that he was receiving commissions on the investments that he brought in and failed to disclose on his 1997 and 1998 federal income tax returns that he had received additional income of more than $140,000 from his participation in the scheme.

Four-Week Trial Ends in Five Convictions in Tax Evasion Case
On August 20, 2004, in Salt Lake City, UT, after a four-week trial, a federal jury convicted five Utahns of conspiring to defraud the United States through the establishment of an abusive trust scheme involving offshore entities marketed through the name of Anglo-American International, Provo, Utah. Convicted of conspiracy were Ozy J. Neeley, Paul J. Young, Kevin J. Crockett, Chad L. Merica, and Robert F. Dodenbeir. Crockett was also convicted of two counts of aiding and assisting in the filing of false income tax returns. Eight people have been convicted of participating in this conspiracy. The leader of the Anglo-American entities, Kirk Koskella is currently serving a 10-year sentence in federal prison. Two other individuals, Dennis Shaw and Stacie Bateman are awaiting sentencing following their guilty pleas to conspiracy at an earlier date.

Three Sentenced for Using Sham Trusts and Corporations to Hide Business Profits from IRS
On July 20, 2004 in Akron, OH, Gary Harris was sentenced to 151 months in prison to be followed by 3 years supervised release and fined $95,000. On June 23, 2004, Michael Kotula was sentenced to 70 months in prison to be followed by 3 years supervised release. In addition, Kotula was ordered to pay a $100,000 fine, the costs of prosecution, and $82,806.83 in restitution to the Internal Revenue Service. Also sentenced was Tamara Schwentker Harris receiving 15 months imprisonment to be followed by 2 years supervised release, and ordered to pay $17,054 in restitution to the Internal Revenue Service. In March 2004, after a four-week trial, the jury found all three defendants guilty of conspiring to defraud the United States. In addition, the jury convicted Harris and Kotula on three counts and one count of income tax evasion, respectively. At trial, the evidence proved the defendants used a maze of trusts and corporations to try to hide approximately $18 million in income generated by various businesses they controlled. Between January 1, 1994 and July 8, 2003, they paid little or no taxes on the income earned. Nonetheless Mr. Harris lived lavishly, acquired several homes, a jet way for his ranch in Conneaut, and an antique Mercedes sports car which he claimed was worth $250,000. Mr. Harris has been in federal custody since his arrest in July 2003. He had previously been convicted of tax evasion for tax years 1987, 1989, and 1990. In addition, between 1998 and 2002, when Mr. Harris was in federal prison after convictions for racketeering and income tax evasion, Mr. Kotula and Ms. Schwentker Harris kept Mr. Harris' businesses running and continued to operate this illegal conspiracy to conceal income from the IRS.